Which of the following accurately describes the phenomenon of crowding out?     government borrowing pushes up interest rates, driving out private investment and consumption     government spending drive up the budget deficit     government spending causes more goods to be allocated to the public sector and fewer are available for the private sector     Increasing the proportion of public sector spending in the composition of GDP renders production less competitive and therefore less efficient.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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  1. Which of the following accurately describes the phenomenon of crowding out?

       

    government borrowing pushes up interest rates, driving out private investment and consumption

       

    government spending drive up the budget deficit

       

    government spending causes more goods to be allocated to the public sector and fewer are available for the private sector

       

    Increasing the proportion of public sector spending in the composition of GDP renders production less competitive and therefore less efficient.

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